The government has reduced the minimum price of sugarcane from KSh 5,750 to KSh 5,500 per tonne in a move aimed at balancing the needs of farmers and millers.
In a directive issued on April 24, 2026, the Kenya Sugar Board ordered all millers to start using the new price immediately and ensure farmers are paid on time.
The decision follows talks by the 4th Interim Sugarcane Pricing Committee, which reviewed the current market situation as sugar production and cane supply continue to rise across the country.
As a result of increased sugar production, the price has fallen from KSh 7,000 to KSh 6,000 to 6,100 per tonne as an effort to ensure that all manufacturing plants continue to function well despite this development.
Some millers called for the price to be reduced to KSh 5,000 per tonne to reflect market dynamics, and finally the decision made by the government was KSh 5,500 per tonne to cushion the farmers.
In spite of this price reduction, the farmers in Kenya are better off compared to other neighboring countries where the sugar farmers receive less. The farmers in Tanzania receive KSh 4,900 per tonne while farmers in Uganda receive KSh 4,500.
This price change is among many others that are being done by the Minister of Agriculture Mutahi Kagwe in an effort to revive the sugar sector as a way of ensuring that there are no imports.
